The Test for Goodness of Fit

question 7

Multiple Choice

The test for goodness of fit

• A)is always a one-tail test with the rejection region occurring in the upper tail
• B)is always a one-tail test with the rejection region occurring in the lower tail
• C)is always a two-tail test
• D)can be a one-tail or two-tail test

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Definitions:

Cash Flows

This term denotes the total amount of money being transferred into and out of a business, especially affecting the company's liquidity.

Fundamental Qualitative Characteristics

The primary attributes that make the information provided in financial statements useful to users.

FASB Conceptual Framework

A foundational set of objectives and concepts that guide the Financial Accounting Standards Board in developing accounting standards.

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting in the United States.